A Detailed Report on Business and Business Environment: Sainsbury's

This report provides a detailed analysis of Sainsbury's business environment, examining its organizational structure, market position, and operational strategies. It begins with an introduction to the concept of the business environment and its importance, followed by an overview of Sainsbury's as a case study. The report then delves into the different types of organizations (public, private, and voluntary sectors), their legal structures, and their characteristics, using Sainsbury's as a primary example of a private sector entity. It explores the size and scope of various organizations, including Sainsbury's, BBC, and Welcome Trust, highlighting their visions, missions, and expansion strategies. The report further examines the relationships between different organizational functions and their alignment with objectives and structure. Additionally, it conducts an analysis of the macro environment, identifying both positive and negative impacts on business operations. Internal and external analyses, including PESTLE and SWOT analyses, are performed to identify strengths, weaknesses, opportunities, and threats. The report concludes by interrelating these strengths and weaknesses with external environmental factors, providing a comprehensive understanding of Sainsbury's business environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations; public, private and voluntary sectors and
legal structures........................................................................................................................1
P2 Explain the size and scope of a range of different types of organisations........................4
TASK 2............................................................................................................................................5
P3 The relationship between different organisational function and their link with
organisational objectives and structure..................................................................................5
TASK 3............................................................................................................................................8
P4 Identify the positive and negative impact which macro environment has upon the business
operations...............................................................................................................................8
P5 Conduct internal and external analysis in order to identify the strength and weaknesses11
TASK 4..........................................................................................................................................14
P6 Interrelation of strength and weaknesses with external environmental factors..............14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business and business environment is an essential concept which is helpful to understand
operating regulation & makes out clear knowledge of how business uses to operates in defined
business environment (Business Environment, 2019). In this, consideration will be given on
different organisational structure along with management of legal structure of to business
operation. In the current era, business entities are doing far good, as business environment is
defined and well managed. This report will be carry on Sainsbury, which is the third largest
chain of supermarket located in the London, UK. As, this firm is constitutes about 16.9 percent
of the market share. This firm is well-known for its quality service or product which will be
given to customer or potential buyers. This report will be carry on the different types of an
organisation, whether, public, private and voluntary. Also, this report will be focus on size &
scope of range of different types of an organisation. Also, assessment will also put light on Pestle
and Swot analysis and strength & weaknesses of each and every external factors. Using this
assessment, critical analysis will be given priority to makes proper understanding of the Pestle
and Swot analysis.
TASK 1
P1 Different types and purposes of organisations; public, private and voluntary sectors and legal
structures
International business is the platform, which has N number of firms or entities which are
currently playing their roles or responsibilities so as to builds business functioning at the
proactive side. In these level of platform, business firm would have to be think on growth as well
as potential of the business units to led correct decision making on business suitability for longer
time. On an international level, different types of the business entities are existed and also which
are classified such as private, public and voluntary (Cavusgil and et. al., 2014). These
classification has its own structures, scope etc., with help of which correct would be get on how
business functioning works and what about its sustainability for business performances or goals.
The classification of different types of an organisation are as follows:
Private sector: It is wholly owned & managed by individual, firms, other private people
or legal authorities. In different manner, private sector is also classified as sole traders, who used
to do their own business. Moreover, big difference between sole traders and private firms are
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also existed. The major behind is its own structure, where sole traders may be mini, but private
firm has its own defined shapes, structures or size as per business hierarchical level. In this
region, priority to the profit making is severe, as there is no specific investments from
government firms or agencies. For private sector, sources of proper sources for funding are
investors, financial institution or other business entity. In this add-on, private sector uses to led
pressure on an internal business environment, by their ups-down of business operation (Charter,
2017).
For example: Sainsbury is the perfect example of the private sector which has its own
customer regulation and working structures.
Legal structures: Legal structure of the Sainsbury is comprises of stakeholder, flat
organisation structures, panel of the 4 BOD and 2300 employee in this present time duration.
Advantages of a flat organisation structure is effective communication channels and its major
disadvantage is rises in conflict within the department.
The legal structure of the private companies:
Sole traders: Those individuals are used to do their own businesses and sell goods or
services in lesser time period and is the sole bearer of all losses and profits of the firm. Sole
trader are those who pay taxes out their own pockets. For example: Sir Donald medicose is the
best examples of the sole trader.
Partnership: When any business is used to be started by two or more person to operates
common business and shares profit as per capital invest in the business. A partnership is said to
be in existence when both the parties associated to it agrees to share the risk .For example: John
Lewis is the best example of the partnership. This business have been formed by 3 different
peoples.
Limited company: These types of an organisation are limited by shares, investment and
also capital invested into the businesses. Crown advocacy services are big examples of the
limited firm, which are limited by shares, investments and profits sharing.
Public Sector: It is governed by different government bodies, agencies, public bodies
who have fully control of the government entity. The major aim is to give assistance for welfare
work for people instead of making profit generation. These kind of business firms are democratic
role, in which every person have its own freedom to ensure about own decision making. Along
with this, people of this firm have controlled and influences for its regulation, in such a manner
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that sectorial bodies would earned higher profits. These entities have major authorisation by
government selected bodies. Also, size, shape or structures of this firm varies from legal bodies
to elected bodies to take decision on this behalf.
For example: BBC is one of the best example of public sector firm, which is controlled b
the government entities and have sharing of making profits.
Legal structures: It is comprises of total 690 employees, following matrix cultures with a
help of which business can accomplishes its goals or targets into the given point of time. Also,
their legal structures is comprises of complex functioning. The advantage is flow of an
information on regular sources of time and disadvantage is chances of an increasing conflicts.
Voluntary organisation:
Non profit organisation: Those organisation, which operates to doing work on any social
cause along with development or welfare of the society. These organisation are only focused
onto to delivery social welfare to people and society for their betterment and welfares. Examples:
Welcome trust is the right example of the non-profit organisation as all their efforts are directed
onto public welfare.
Profit organisation: Those organisation which works with an intention to earn higher
profit and becomes the business leaders. Private and public sector are part of the profit
organisation, because thy have long expenses to be bear to provides goods or services to the
people and its customers. For examples: John lewis and BBC are two common examples of the
profit organisation.
Firm which are mainly started to perform its own work for people welfare, know about
their needs and desires to reduces using social works. Voluntary firm can be sustained as part of
the private, public or voluntary units or supports. Moreover, this firms are used to get funds from
private business and in return, they uses their name to promotional purposes. Voluntary firm are
long surviving business, as they have big support of people and also increasing reputation among
society (Andersson, Forsgren and Holm, 2015).
For example: Welcome trust is the best example of the voluntary organisation, whose
role is to do research on human health and protection of animal & biodiversity for long time.
This is a part of social and wildlife protection.
Legal structures: Legal structure of the Welcome trust is comprises of direct level of
control or power, in which power is available to every individual. Advantage is an effective
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working along with regulatory working and disadvantage is mis-confusion or lack of control on
the workers.
P2 Explain the size and scope of a range of different types of organisations
Business organisation are varies in terms of size and structures to operates and continues
business functioning at a major sector. Different types of the firm such as private, public or
voluntary has its own structure or size with help of which business entities are continued their
own business performances. An explanation on different types of an organisation for size and
structures are as follows:
Sainsbury: Sainsbury is the third largest business retailer which deals in groceries and
also other businesses such as telecommunication, financial support etc. This is known for its own
diverse cultures or environment. Sainsbury is a complete ventures, which has started its
operations with support of local vendors (Apăvăloaie, 2014).
Vision & mission: Sainsbury is visionary for expanding its services in the globe with
higher customer satisfaction. Also, the vision for being as “Customer's first priority”.
Size & scope: This leading retail business has 4000 people who are located in location of
England, Ireland, Scotland etc. As, they are looking to expands their business into the region of
the Europe to expands the business operations. The objectives of the Sainsbury is to accomplish
rise in sales by 3 percent, which their size or structures can accomplishes using effective
planning and also going leadership roles or managerial regulation.
Expansion strategy: Sainsbury's has expands their business operation by doing
franchising with the local retailer to sell its retail products. By expanding their business they can
cover a big marketplace which helps them to achieve great profitability and productivity.
Through franchising, an overall expected business growth is calculated at the margin of 4
percent.
BBC: It is the leading broadcasting firm and financial institution which used to provides TV
views, investment generation to other people and management consultancy services. This firm is
recognised for its quality services.
Vision or mission: The vision of this firm is to make “People thought to be broadcast”
and mission is to increases business profitability by 20 percent in the financial years.
Size & scope: BBC has all 1200 people who are working in domestic and other nations
also. There structure is comprises of flat organisational structures, in which only different units
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or functions of business are shown. Objectives of the BBC is to gain market richness which
their 1200 people can accomplishes using their own skills or competencies. (Botha, Kourie and
Snyman, 2014).
Expansion strategy: BBC has expand its business operation by doing joint venture with
local news agency of the UK, in response they got manpower as well as news sources. After
sharing their business with each others they can able to sustain in the market for a long period of
time and also can increase their brand value. Through this, growth of a business is expected to
top level. Suitability for further business expansion is also high.
Welcome trust: This firm is engaged in doing research for protection for human protection and
saving animals to give relief to the biodiversity.
Vision & mission: Vision of this firm is “ Contributes big efforts in human protection
and wildlife protection” and mission is to bring growth in people minds in regards to human
empowerment (Cairncross, 2014).
Size or scope: There is no as such specific structure of Welcome trust, as anyone can
comes and takes participation in working for same. An objective of the Welcome trust is to make
ensures on providing full satisfaction and also fulfilling needs or wants of the people. Hence, this
objective can be fulfil by allocating each and every people to work effectively.
Expansion strategy: Through joint venture, Welcome trust has increased its business
functioning and expansion of social welfare onto the optimised stage of business. Business
expectation is rises to social welfare and also development. The integration of operations with
other organisation helps in enhancing business reach.
TASK 2
P3 The relationship between different organisational function and their link with organisational
objectives and structure
Sainsbury is the biggest supermarket chain in United Kingdom. In the organisation,
different departments are work with together which will help an organisation by improving its
productivity and performance easily (Cohen and Kietzmann, 2014). Human resource department,
marketing department, finance department, research and development department, operational
department etc. All these departments are interrelated and work with the purpose to accomplish
long term goals and objectives of an organisation. Along with this, all these departments are
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interrelated with each other and directly influence of structure of Sainsbury's and BBC.
Therefore, interrelationship among all departments and its impact on business structure and
objectives will be determined as under:
Human resource and marketing department: Main role of human resource manager of
Sainsbury's is to hire talented employees within and outside of the organisation. For example: in
order to provide accurate information about vacant position, HR department of sainsbury and
BBC require help from marketing department. For this, marketing department use different
technology such as social media, e-mail etc. All these are consider main and effective sources
which will support an organisation to gain competitive benefits within given time duration
(Dima, Grabara and Modrak, 2014).
Sales department and finance department: Sales department is another main and
important department which play vital role in improvement of business objectives. finance and
sales department are interrelated with each other and support an enterprise to gain long term
goals and objectives within given time duration: For example: Sales department of Sainsbury and
BBC needs different resources such as fund, manpower etc. for doing business activities in
effective and efficient manner (Erasmus, Strydom and Rudansky-Kloppers, 2016). For this, sales
department is require to consult with finance department, as it will help both department to
achieve business objectives.
Finance department and production department: It is another department of
Sainsbury which play vital to handle or manage all monetary functions within an organisation
during the entire year. Finance department is only liable for making the cash flow statements,
balance sheet and many other financial statement in systematic manner. On the other side,
Production department of BBC also play essential role in order to manufacture any goods and
services of the business needs some of the capital which are given by the finance department.
Thus, both department are interrelated with each other and support an enterprise to attain
competitive advantages and achieve long term goals.
Organisation structure: It defines how different activities such as coordination, task
allocation and supervision are oriented toward the accomplishment of organisational aims and
objectives. Sainsbury followed flat structure in this, company provide power to their all
employees to make decision regarding implementation of business policies, procedures etc. All
this department of Sainsbury and BBC such as human resource, marketing, production, research
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and development etc (Georgescu and Popescul, 2015). All these departments will work for
accomplishment of long term objectives and goals of Sainsbury's.
There are two types of organisation structure which is Tall or flat.
Organisation structure of Sainsbury's
Tall Structure: A tall organizational structure introduces as an effective structure of an
organization which is broken down into a distinct hierarchy. According to this structure, an
enterprise will have a different number of administrator, each of which will be liable for
controlling and monitoring a portion of the enterprise. For example: Sainsbury follow tall
structure because there have different number of management.
Organisation Structure of BBC
Flat Structure: A flat organization introduces to an enterprise structure with some or no
levels of administration between management as well as staff level workers. The flat enterprise
supervises workers less while boosting their enhanced engagement in the decision-making
process. For example: BBC follow Flat structure because there is no level between management
and staff level employees. Undertaking this approach is helpful in formulating crucial decisions
by top management.
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TASK 3
P4 Identify the positive and negative impact which macro environment has upon the business
operations
It is necessary for any of the organisation to know about external environment because it
helps to find the accurate value of the company that how they are required to work in future for
the purpose of achieving the organisational goals. For finding external factors, Sainsbury can
conduct PESTLE analysis as it will help to identify all the factor that can impact on the
performance of business organisation. Some of the positive and negative of this factors on
Sainsbury has been explained below:
Political factors: It is among one of the factor which focuses on government policies and
other political condition which is being on the business organisation from where they are
conducting their day to day business activity (Glova, Sabol and Vajda, 2014). Sainsbury is one
those business organisation which deals at international platform and this is one of the company
might face number of problem for operating its business activities. Some of the positive and
negative impact of Political factor on Sainsbury is explained below:
Sainsbury's Positive impact: The tax rate on corporate sector is 19% and it was 28% in year 2010
which shows that rates have decrease due to which Sainbury is able to sale its product at
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low price and that can easily influence the customer (United Kingdom Corporate Tax
Rate, 2018).
 Negative impact: Due to the effect of Brexit, price of many of the product which is being
sold by Sainsbury have changed and because of that customers are facing lots of
problems as they are unable to afford it.
BBC
In context of BBC, it is a company which operates a business of broadcasting services.
Political factors have some positive impact on the company as the UK government has decided
to authorise them for their broadcasting services so that it can be beneficial to them to predict
political environment easily and operate without any intervention.
Economic factors: The area which is focused in the factor is inflation rate, interest rate,
income, expenditure and many more. It has direct impact on the purchasing power of consumer.
Here, Sainsbury's is required to judge the situation and need to deliver the product at minimum
price so that customers can be connected with the organisation. Some of the positive and
negative effect of economic factor is listed below:
Sainsbury's
 Positive impact: As Sainsbury's is capable of investing lots of money in the market
research to find the current situation, they are able to deliver the product at reasonable
price which has a positive impact on company.
 Negative impact: The increase in interest rate as reduce the purchasing power of
consumer which has the negative impact on organisation and unable to earn appropriate
amount of profit.
BBC
The changes in the economic growth rate , inflation rate also has affected the working of
BBC in some negative aspects that is due to Brexit government of the UK has to pay high debt
rate which has impacted all businesses.
Social factors: The main things which are considered within this factor is behaviour,
believes and values of the existing consumer of the company (Kolk, 2016). As desire do changes
according to the age factor and education and belies, it is the responsibility of management team
of Sainsbury's that they must try to deliver the services as per the need and wants of their
customers. If this can be done, then chances of earning profit automatically increases.
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Sainsbury's
 Positive impact: In this, Sainsbury's have introduced Artificial Intelligence to its most of
the stores due to wants and requirement are easily found and even helps to increase the
sale (Introducing AI To A 150 Year-Old Grocery Store: Sainsbury’s Interview, 2019).
 Negative impact: AI services is too expensive due to which it increases the overall cost
of an organisation and reduces the profit of Sainsbury's.
BBC
These factor have affected the business of BBC in a positive manner as BBC works with
the flexibility and adopts the current trends by modifying their strategies frequently. The
organisation have launched their services online considering market trends and preferences
which have increased their popularity worldwide.
Technological factors: This factor is all about new technology, innovation and ideas. It
is one of the factor which do have the capacity to influence customer easily. In context of
Sainsbury's, they are trying to bring new technologies within the company such as online
delivery system, online payment and many more. Positive and negative impact of the
technological factors on Sainsbury's is described below:
Sainsbury's
 Positive impact: In this, Sainsbury's have introduced “Smart-shop” technology due to
which customers are not required to go to store and wait in the queue which helps to
attract the customers(Sainsbury’s introducing ‘smartshop’ technology and new store
format, 2019).
 Negative impact: Latest technologies like smart-shop are not applied to every single
store and because of that customer's are still required to face problem in many of the
branch and that have a negative impact on Sainsbury.
BBC
Frequent changes in technology have negative impact on the working of BBC as it is
difficult for an organisation to keep updating their technology. The implementation of
technology can have positive impact on the cost effectiveness and can gain competitive
advantages for an organsiation.
Legal Factor: It is defined as the law and policies which are enforced by the Act of
Parliament and that are need to be followed organisation. It helps to protect the rights and
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